System and method of using electronic funds transfer to complete payment for goods and services

ABSTRACT

A system and method of using Electronic Funds Transfer (EFT) to complete payment for goods and services. An example method of operating a transaction terminal includes identifying items selected by a customer for purchase, determining a required payment amount for the items, obtaining identification information from the customer, obtaining contact information and payment information, including bank account information and bank routing number information, from a customer profile associated with the identification information, creating a check image, sending a request for payment message providing access to the check image and the payment information to a mobile communication device of the customer using the contact information in the customer profile, and receiving a reply message from the mobile communication device authorizing payment for the items via electronic funds transfer and including a  2 D barcode containing the check image and the payment information.

BACKGROUND

This present invention relates to transaction methods and morespecifically to a system and method of using Electronic Funds Transfer(EFT) processes to complete payment for goods and services.

Credit cards are easily stolen and used fraudulently to buy goods orservices. Credit card services are also expensive.

An alternative to credit cards is EFT. The Automated Clearing House(ACH) system processes credit and debit transactions through EFT. Anexample credit transaction is payments to businesses from customers. EFTis relatively less expensive and payments can be run in batch modeduring off-peak hours.

It would be desirable to provide a system and method of completingpayment at a lower cost and with a higher level of security than creditcards.

SUMMARY

In accordance with the teachings of the present invention, a system andmethod of using Electronic Funds Transfer (EFT) processes to completepayment for goods and services is provided.

An example method includes identifying items selected by a customer forpurchase by a transaction terminal, determining a required paymentamount for the items, obtaining identification information from thecustomer, obtaining contact information and payment information,including bank account information and bank routing number information,from a customer profile associated with the identification information,creating a check image, sending a request for payment message providingaccess to the check image and the payment information to a mobilecommunication device of the customer using the contact information inthe customer profile, and receiving a reply message from the mobilecommunication device authorizing payment for the items via electronicfunds transfer and including a 2D barcode containing the check image andthe payment information.

An example method of operating a mobile communication device of acustomer includes receiving a request for payment message from atransaction terminal, wherein the request for payment message providesaccess to payment information from a profile of the customer and to acheck image, displaying a payment screen containing the check image, thepayment information, and an authorize payment selection element,recording customer selection using the authorize payment selectionelement, creating a 2D barcode containing the check image and thepayment information, and sending a reply message authorizing payment forthe items via electronic funds transfer and containing the 2D barcode tothe transaction terminal by the mobile communication device.

BRIEF DESCRIPTION OF THE DRAWINGS

The present invention may take form in various components andarrangement of components and in various methods. The drawings are onlyfor purposes of illustrating example embodiments and alternatives andare not to be construed as limiting the invention.

FIG. 1 is a block diagram illustrating an example transaction system.

FIG. 2 illustrates a mobile communication device and example displayscreen.

FIGS. 3A-3B form a flow diagram illustrating an example transactionmethod.

DETAILED DESCRIPTION

Referring now to FIG. 1, example transaction system 10 includestransaction computer 20, server 40, mobile communication device 60 andfinancial institution computers 70.

Transaction computer 20 executes transaction software 22 which displaystransaction screens using display 24 for guiding an operator through atransaction, receives operator inputs and selections during thetransaction from input device 26, receives item identificationinformation from item identifier 28, and prints receipts using printer32.

An example Input device 26 may include a keyboard or keypad.Alternatively, input device 26 may be combined with display 24 as atouch screen.

An example item identifier 28 may include a barcode reader and/or radiofrequency identification (RFID) reader. The barcode reader may include ascale for weighing non-barcoded items, such as produce items.Transaction software 22 sends item identification information to server40 via network 50 to obtain price information and enters the priceinformation into the transaction.

An example printer 32 prints receipts and optionally other documents,such as promotions.

Transaction computer 20 may additionally include one or more paymentperipherals 30 for completing payment using credit or debit cards andusing cash money, including currency and coins. An example paymentperipheral 30 may include a card reader, personal identification number(PIN) keypad, and/or a signature pad.

Transaction software 22 is additionally capable of completing paymentvia Electronic Funds Transfer (EFT) using Automated Clearing House (ACH)processes. Transaction software 22 obtains customer permission toperform a transfer of funds using EFT to pay for items of a transactionfrom the customer's account 72 at the customer's financial institutioncomputer 70 to the retailer's account 74 at the retailer's financialinstitution computer 70.

In an example embodiment, transaction software 22 creates an image of acheck using account information from customer profile 42, and sends thecheck image to mobile communication device 60 in a message. Transactionsoftware 22 addresses the message using contact information fromcustomer profile 42. Transaction software 22 may alternatively store thecheck image in server 40 and provide a link to the check image in themessage.

Transaction software 22 may use a check image template 34 containingfields that transaction software 22 populates to complete payment.Required fields include the account number associated with customeraccount 72, the bank routing number associated with the customer'sfinancial institution 70, a check amount or the amount of thetransaction, and a check number. Transaction software 22 may requirethat additional check fields by populated, such as payer name, payeename, and date.

Transaction software 22 obtains the account number and bank routingnumber from customer profile 42. Transaction software 22 fills theamount field with the total payment required from the transaction andgenerates a check number for the check number fields.

Transaction software 22 receives a customer response message from mobilecommunication device 60 authorizing payment, and sends paymentinformation to the financial institution computer 70 of the retailer toprocess the payment from financial institution computer 70 of thecustomer using EFT. An example response from mobile communication device60 may include a two-dimensional (2D) barcode representing the checkimage, including the account number, the bank routing number, theamount, and the check number.

Transaction computer 20 includes one or more processors, memory, andprogram and data storage. Transaction computer 20 may execute anoperating system such as a Microsoft or other operating system.Transaction computer 20 may execute other computer software that may bestored in a computer readable medium, such as a memory. Transactioncomputer 20 may be coupled to other computers, including server 40,mobile communication device 60, and financial institution computers 70via network 50. Transaction computer 20 may also be capable of sendingand receiving messages, including but not limited to electronic mail(e-mail) messages, Short Message Service messages (text messages), andMultimedia Message Service messages (multimedia messages). Transactioncomputer 20 further includes graphics circuitry for providing displayscreens to display 24, network circuitry for connecting to the network50, and other circuitry for connecting to other peripherals.

Server 40 provides price information to transaction software 22 during atransaction. Server 40 additionally stores customer profiles 42, whichinclude customer information necessary for completing payments via EFT.The customer information may include contact information, a bank accountnumber, and a bank routing number. Customers can signup to participatein this type of payment process by connecting to server 40 from a homecomputer or from mobile communication device 60.

The functions of server 40 may be completed by one or more separatecomputers, each with one or more processors, memory, and program anddata storage. Server 40 may execute an operating system such as aMicrosoft or other operating system. Server 40 may execute othercomputer software that may be stored in a computer readable medium, suchas a memory. Server 40 may be coupled to other computers includingtransaction computer 20, mobile communication device 60, and financialinstitution computers 70 via network 50, and include a web serverconnected to the World Wide Web (WWW or “web”). Server 40 may providepayment software 42 and web content, including web pages for capturingcustomer information for storage in customer profiles 42.

Network 50 may include one which uses the TCP/IP protocol. Network 50may include a combination of local area and wide area networks. Network50 may include any combination of wireless or wired networks. Network 50may include a combination of private and public networks, including aglobal communication network, also known as the Internet.

Mobile communication device 60 participates in a check payment in whichthe customer uses mobile communication device 60 to authorize paymentfor purchased items during a transaction. Mobile communication device 60receives a message from transaction software 22 containing a check withinformation from customer profile 42. Mobile communication device 60obtains a customer response authorizing payment, and sends a reply withthe authorization to transaction software 22.

In the example embodiment, mobile communication device 60 receives thecheck image, or a link to the check image, in the message fromtransaction software 22. Mobile communication device 60 creates the 2Dbarcode from the check image and the account number, bank routingnumber, amount, and check number, and sends the 2D barcode totransaction software 22.

Mobile communication device 60 may include, but not be limited to, asmart phone, personal digital assistant, or other portable communicationdevice. Mobile communication device 60 includes one or more processors,memory, and program and data storage. Mobile communication device 60 mayexecute an operating system. Mobile communication device 60 may executeother computer software, such as web browser software to display webpages from server 40, which may be stored in a computer readable medium,such as a memory.

Mobile communication device 60 further includes graphics circuitry forconnecting to a display, network circuitry for connecting to network 50,and other circuitry for connecting to other peripherals, such as aninput device (e.g., a touch overlay to the display).

Mobile communication device 60 may download application software tointeract with transaction software 22, to present the check image,and/or to create the 2D barcode. For example, server 40 may providepayment software 42 for download from the web site hosted by server 40.

In one example, payment software 42 may be written in a programminglanguage such as the Java programming and be hosted within the browsersoftware.

As another example, payment software 42 may include a script, such asJavaScript, combined with hypertext markup language (HTML) or othersuitable web page language.

As another example, payment software 42 may include a software appletwritten to be executed within the operating system of the smart phone.

Financial institution computers 70 process EFT payments from a customerto a retailer. The financial institution computer 70 associated with afinancial institution or bank of the retailer receives customerauthorization from transaction software 22 in the form of a 2D barcodeof the check image, identifies the financial institution or bank of thecustomer from the information in the 2D barcode, and contacts thefinancial institution computer 70 associated with the financialinstitution or bank of the customer. Financial institution computers 70complete an EFT process to transfer funds in the amount of theauthorized payment from a customer account 72 at the retailer's bank toa retailer account 74 at the retailer's bank.

Referring now to FIG. 2, an example mobile communication device 60includes a smart phone. Mobile communication device 60 displays screen80 with an example title, “EFT PAYMENT”, following receipt of a messagefrom transaction software 22. Screen 80 includes an image 82 of a check.An example check image is populated with the amount of the transaction,the date, and the retailer's name in the “pay to the order of” line.Screen 80 also includes an acceptance statement 84 and a submit button86. In an example embodiment, screen 80 is created by payment software42, which also creates a response acceptance 2D barcode and causesmobile communication device 60 to send a return payment authorizationmessage to transaction software 22 containing the response acceptance 2Dbarcode when the customer selects submit button 86.

Referring now to FIGS. 3A-3B, an example transaction method isillustrated.

In step 90, transaction software 22 identifies all of the items forpurchase and determines a required payment amount.

In step 92, transaction software 22 obtains customer identificationinformation from the customer, who has elected to pay using EFT. Anexample form of identification may include a loyalty card, which may beread by a card reader.

In step 94, transaction software 22 obtains customer contactinformation, bank account information, and bank routing numberinformation from a customer profile 42 associated with the customeridentification information obtained from the loyalty card.

In step 96, transaction software 22 creates a check image 82 using checkimage template 34 and information from customer profile 42.

In step 98, transaction software 22 sends a message addressed to thecustomer using the contact information in customer profile 42 containingthe check image 82.

In step 100, mobile communication device 60 receives the message.

In step 102, mobile communication device 60 displays a screen 80containing the image 82 of the check.

In step 104, mobile communication device 60 obtains customer permissionto proceed when the customer selects the submit button 86.

In step 106, mobile communication device 60 creates a 2D barcodecontaining the check image 82 and required check information, includingthe account number, the bank routing number, the amount, and the checknumber.

In step 108, mobile communication device 60 sends a reply messagecontaining the 2D barcode to transaction software 22.

In step 110, transaction software 22 receives the reply message andsends the 2D barcode to the retailer's financial institution 70 with arequest to complete an EFT payment from the customer's account 72 to theretailer's account 74.

Transaction software 22 may print a receipt using printer 32.

Advantageously, the retailer is able to receive payment at a lower costthan the cost of processing a credit card transaction and has moreassurance that the customer owns the information used to providepayment. The customer has avoided problems associated with theft ofcredit card information.

Although the present invention has been described with particularreference to certain preferred embodiments thereof, variations andmodifications of the present invention can be effected within the spiritand scope of the following claims.

1-12. (canceled)
 13. A method of operating a mobile communication deviceof a customer to complete a transaction involving items selected forpurchase from a business by the customer, the method comprising:receiving a request for payment message during the transaction by amobile communication device of the customer, wherein the request forpayment message provides access to a check image; displaying by themobile communication device a payment screen containing the check imageand an authorize payment selection element; recording customer selectionusing the authorize payment selection element by the mobilecommunication device; and sending a reply message authorizing paymentfor the items via electronic funds transfer by the mobile communicationdevice.
 14. The method of claim 13, wherein the request for paymentmessage contains the check image.
 15. The method of claim 13, whereinthe request for payment message contains a link to the check image. 16.The method of claim 13, wherein the check image includes an amount fieldcontaining an amount of the transaction.
 17. The method of claim 13,wherein the check image includes a plurality of fields.
 18. The methodof claim 17, wherein a number of the fields are completed.
 19. Themethod of claim 13, wherein the reply message contains a 2D barcodecontaining the check image.